As the deadlines for FATCA implementation approach, more and more foreign entities are facing the hard questions: Does this apply to us, and if so, what are we going to do about it?
An article written by Marnin J Michaels, Gregory C Walsh, Glenn G Fox, from Baker & McKenzie Zurich and New York, and Anne H Gibson from the University of Oklahoma, and published in the Thomson Reuters Journal of International Taxation, suggests that, for non-US trusts and trust structures, complying with FATCA will not be simple. They claim that trusts, trustees, and asset managers will face unique difficulties in assessing and managing their FATCA implementation requirements, and will need a more bespoke solution to these problems than many other financial institutions.
The authors say trustees will need to examine each entity in each structure and first determine how these entities will be classified under FATCA. Then the trustee will need to determine the best method for each entity to comply with FATCA. There is no one-size-fits-all solution – it will depend on the particular circumstances of the structure and the trustee, including the specific clients, entities, and accounts involved, jurisdiction.
Read the full article in the November 2013 issue of the Journal of International Taxation on Thomson Reuters CHECKPOINT™ WORLD. A precis of the article is in Issue 48 of the Thomson Reuters Weekly Tax Bulletin.